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The Odisha government has reduced the stamp duty for registration of common areas in apartment projects to a fixed INR 50,000, replacing the earlier 5% levy charged on residents’ associations. The move is aimed at easing apartment registration procedures and resolving delays linked to transfer of common areas under the Odisha Apartment (Ownership and Management) Act, 2023. Alongside this, the state has introduced a uniform 5% stamp duty on apartment purchases. The changes are expected to improve compliance and speed up pending registrations, though concerns remain over higher costs for affordable housing buyers.
The Odisha government has amended provisions under the Indian Stamp Act, 1899, reducing the stamp duty for transfer of common areas in apartment projects to a fixed INR 50,000. The amendment is expected to simplify apartment registrations and reduce financial pressure on apartment owners’ associations that were earlier required to pay a much higher amount based on project value. Advertisement
The change is linked to implementation of the Odisha Apartment (Ownership and Management) Act, 2023, which made it mandatory for developers to transfer common areas and facilities to the Association of Allottees during execution of the first deed of conveyance. These common areas include staircases, lifts, corridors, parking spaces, terraces, clubhouses and other shared facilities within residential projects.
Earlier, the Association of Allottees had to pay 5% stamp duty for transfer of these common areas, a cost that industry stakeholders said had become a major hurdle in completing registrations. In several housing projects, developers and residents faced delays in execution of conveyance deeds because of the high duty burden attached to common area transfers.
With the latest amendment, the state government has capped this charge at INR 50,000 irrespective of the size or value of the apartment project. Officials believe the revised structure will help clear a large number of pending apartment registrations and improve compliance across housing societies in Odisha.
The government has clarified that individual apartment buyers will continue to pay 5% stamp duty while registering their units, including the undivided share of common areas attached to the property. At the same time, Odisha has replaced its earlier slab-based stamp duty system with a uniform 5% structure for all apartment categories.
Under the earlier system, apartments priced up to INR 5 lakh attracted 3% stamp duty, while units valued between INR 5 lakh and INR 15 lakh were charged 4%. Apartments above INR 15 lakh already attracted 5% duty. Officials reportedly stated that the earlier slab system had become outdated as most urban apartment prices had moved beyond those lower price ranges over the years.
The latest notification follows another reform introduced in the past year, when the state government fixed a consolidated registration fee of INR 20,000 for transfer of common areas under the Registration Act, 1908. Real estate experts believe both changes together could help streamline documentation and remove legal complications in apartment ownership structures.
Industry stakeholders have also pointed out that many completed housing projects in cities such as Bhubaneswar, Cuttack and Rourkela were facing delays in formation of associations and transfer of common facilities because of the earlier high stamp duty structure. The revised fee is expected to provide relief to both developers and apartment owners waiting for final documentation and handover formalities.
However, the move has also drawn mixed reactions from housing experts and homebuyers. Some experts said the removal of lower stamp duty slabs may increase the cost burden for buyers in the affordable housing and economically weaker section categories. According to them, instead of introducing a flat 5% structure, the government could have revised the pricing thresholds to better match present-day market conditions.
Concerns have additionally been raised regarding possible duplication in charges. Experts noted that homebuyers already pay stamp duty that includes the undivided share of common areas during individual apartment registration. They argued that charging a separate duty during transfer to the residents’ association may still create an additional financial layer, especially in smaller residential projects.
Despite these concerns, the amendment is being viewed as an important step toward improving apartment governance and ensuring smoother execution of conveyance deeds in Odisha’s residential market.
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